Panel seeks contempt citation against Enron

A Senate committee investigating possible price gouging in
California's energy market voted Wednesday to ask the full Senate
to find Texas-based Enron Corp. in contempt for failing to comply
with a subpoena for documents.

Just hours earlier, Enron sued the Senate Select Committee to
Investigate Market Manipulation to stop the subpoena of its
financial and electricity trading records.

Enron attorney Michael Kirby said the company is prepared to
turn over 25,000 documents that were already in California, but
that other documents the committee wants are in Texas and out of
the panel's reach.

Kirby filed 17 objections to the subpoena, including one that
only the Federal Energy Regulatory Commission has the authority to
investigate wholesale markets. The committee voted to overrule most
of the objections.

"They've sent two things to Texas -- our money and these
documents, and they're saying we can't get either one back," said
Laurence Drivon, special legal counsel to the Senate committee.

The other subject of possible sanctions, Atlanta-based Mirant
Inc., agreed to turn over subpoenaed documents. The committee will
review Mirant's compliance in 30 days and could revisit whether to
find it in contempt.

Committee chairman Joe Dunn, a Santa Ana Democrat, said the
committee's investigation will continue despite Enron's "pure act
of intimidation. We're not going to back down."

Enron's suit, filed in Sacramento Superior Court, said the
company's financial papers are outside the committee's jurisdiction
because most of its operations and paperwork are outside
California.

California's two public university systems have reached a
tentative settlement with Enron Energy Systems Inc. to buy cheap
power, bringing to an end a federal lawsuit accusing the Houston
company of wanting to sell the electricity at a higher cost.

Enron has tentatively agreed to extend its contract with
California State University and the University of California for
two years, Chancellor Charles B. Reed told CSU's board of trustees
in Long Beach Wednesday.

The agreement means the university systems will continue
receiving electricity directly from Enron rather than from Southern
California Edison and Pacific Gas & Electric.